Wednesday, May 01, 2013

Bad insurance policy

Here is a warning against buying a life insurance policy. Read the benefit illustration. Look at the guaranteed cash value and compare against the effect of deduction. If you find the cash value after the 5th year to be lower than the effect of deduction, reject the policy. 
At one time, there was some regulation that give a minimum cash value. This regulation was removed a few years ago. Now the cash value can be very much smaller than the deductions. It means that a large part of your savings and interest, more than 80% in some cases, can be confiscated from you,if you are not able to pay the premiums. This is daylight robbery!
If you have bought a policy that has this bad feature, write to


zhummmeng said...

Never never buy a with cash value life insurance.
Life insurance is insuring risk and saving is saving twice above inflation.
Can this whole life insurance insure you adequately at a low cost and give you a decent REAL return of at least 4%?
No...neither . WL is rubbish product and they only enrich the agents and the company. This a fact.

john said...

Just buy the cheapest term policy and invest the rest in a regional index fund. It beat all the insurance life policy in the market. Simple as that.

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